SIMI VALLEY : Privatization of Bus Service Is Studied

Simi Valley officials are studying whether the city could save money by turning over its bus service to a private operator.

The city has spent $12,000 to hire SR Consultants of Newport Beach to review the proposal, with the study expected to be completed within the next two weeks, said Jim Wolfe, deputy director of community services. The council will then decide what action to take.

“Basically we’re looking at the bus system to see if there are any advantages to privatizing all or part of it,” Wolfe said, adding that the federal government requires the city to do such a study every three years.

The cost of operating the bus service in the fiscal year that ends in July will run about $1.3 million, he said. Approximately $700,000 of the operating money will come from federal grants, with the remainder to be paid out of the city’s general fund, he said.

Bus ridership in the city in 1991 totaled 199,755, up from 184,709 in 1990, city officials said. Although ridership has steadily increased in the past few years, some officials said the city cannot afford to continue to subsidize the service.

Councilwoman Sandi Webb said the city and the federal government paid about $4 to subsidize each bus passenger. Passengers pay 75 cents for a one-way fare, and older people pay 25 cents.

“It’s costing us an awful lot of money,” Webb said. “It’s outrageous. I don’t think government should be in the transportation business.”